LL began a consulting business on 1/1/2016. Her business is

jagguarpaw January 17, 2017 0 Comments

Question: LL began a consulting business on 1/1/2016. Her bu…

LL began a consulting business on 1/1/2016. Her business is organized as a C (Regular Corporation) called L & L, Inc. Lucy owns 100% of the company’s stock.

Income and expense information for 2016:

Revenue- 1,020,000

Operating Expenses-870,000

Qualified Dividend paid to Lucy during year-100,000

Lucy did not receive any salary from the business

Lucy and Jason (married filing joint return, no children)

Jason salary- 142,000

Total itemized deduction for couple- 28,000

  1. Calculate the taxable income and the income tax for the corporation and for Lucy and Jason